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Utah Code Title 13. Commerce and Trade § 13-23-6. Exemptions from bond, letter of credit, or certificate of deposit requirement

Current as of January 01, 2025 | Updated by Findlaw Staff

(1) A health spa is exempt from Subsections 13-23-5(2) through (5) for a health spa facility, if the health spa only offers access to a health spa service at the health spa facility through:

(a) the purchase of an individual class or session;

(b) the purchase of a package:

(i) with a defined number of classes or sessions; and

(ii) for which the health spa may not hold more than $150 worth of a consumer's unused credit;

(c) the purchase of a monthly membership or pass, payment for which the health spa does not collect from a consumer more than two months in advance;

(d) an installment contract that:

(i) provides for the consumer to make all payments due under the contract, including a down payment, an enrollment fee, a membership fee, or any other payment to the health spa, in equal monthly installments spread over the entire term of the contract; and

(ii) contains the following clause: “If this health spa ceases operations at or changes the consumer's primary location in violation of Utah Code Subsection 13-23-3(7), (8), or (9), no further payments under this contract shall be due to anyone, including any assignee of the contract or purchaser of any note associated with or contained in this contract.”; or

(e) a combination of health spa services described in Subsections (1)(a) through (d).

(2) For purposes of finding the principal amount for the bond, letter of credit, or certificate of deposit required under Section 13-23-5, a health spa is not required to include in the calculation described in Subsection 13-23-5(3) a contract that offers access to a health spa service as described in Subsection (1).

(3) A health spa that claims exemption from Subsections 13-23-5(2) through (5) or that a contract should be excluded from the calculation described in Subsection 13-23-5(3) bears the burden of proving to the division that the health spa or contract meets the relevant criteria described in Subsection (1) or (2).

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Cite this article: FindLaw.com - Utah Code Title 13. Commerce and Trade § 13-23-6. Exemptions from bond, letter of credit, or certificate of deposit requirement - last updated January 01, 2025 | https://codes.findlaw.com/ut/title-13-commerce-and-trade/ut-code-sect-13-23-6/

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